S&P 500 Futures flirt with record high above 3,650 even as market optimism fizzles


  • S&P 500 Futures stays mildly, up for the fourth day in a row.
  • US-China tussle, mixed clues on virus and vaccine probe earlier risk-on mood.
  • US stimulus, Brexit headlines confuse markets amid a light calendar.
  • US NFP awaited, risk news to keep the driver’s seat.

S&P 500 Futures gains eight points, or 0.22% intraday, to 3,672.50 during the initial hour of Tokyo trading. In doing so, the risk barometer nears the record high of 3,681.62 marked the previous day.

Chatters concerning the US coronavirus (COVID-19) stimulus package and the covid vaccine optimism have helped the US equity derivative to refresh the all-time high on Thursday. However, following the rejection of the covid aid package by US Senate Majority Leader Mitch McConnell joins the news of the Pfizer-BioNTech duo’s supply challenge to probe the risks.

Also on the negative side were the updates that the US confirms four companies blacklisted due to the possible links with the Chinese military. Additionally, the US slashing of China's Communist Party members’ visas from 10 years to 1 month and US Director of National Intelligence John Ratcliffe’s tough stand on Beijing also dim the previous optimism.

On the positive side is the news that the US Department of Justice is in talks with the Huawei Finance Chief Meng Wanzhou to allow her to return to China if she agrees to some wrongdoing. Further, CNN’s comments that US President-elect Joe Biden has a slightly constructive view over the Sino-American tussle also keep the risks positive.

Though, fears that the covid numbers from the US are rising by leaps and bounds as well as expectations of a no-deal Brexit challenge the market’s trading sentiment.

As a result, stocks in Asia-Pacific trade mixed while the US 10-year Treasury yields drop 1.1 basis points (bps) to 0.91% by press time.

While fresh news concerning the aforementioned risk catalysts can keep entertaining the global market players, November’s employment report for the US will also be the key to watch amid broad US dollar weakness.

Read: Nonfarm Payrolls Preview: Another dollar’s disappointment underway

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 

GBP/USD News

EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 

EUR/USD News

Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Bank of Canada Rate Decision Preview: No change anticipated in interest rate

The Bank of Canada is widely expected to keep monetary policy and quantitative easing unchanged at its meeting on Wednesday in spite of new COVID-19 provincial lockdowns and a slowing economy.

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures